Novartis, the Swiss pharmaceutical giant, announced on Tuesday a major restructuring that included an agreement to pay up to $16 billion for GlaxoSmithKline’s cancer drug business.
Novartis also said it would sell its own vaccine business to GlaxoSmithKline for $7.1 billion; that it had agreed to sell its animal health division to Eli Lilly and Company for $5.4 billion; and that it would put its flu business up for sale.
Capping off a whirlwind day of deal making, Novartis added that it would combine its over-the-counter pharmaceutical business with GlaxoSmithKline’s consumer drug business in a new joint venture that would be one of the world’s biggest companies in consumer health care.
“The transactions mark a transformational moment for Novartis,†Joseph Jimenez, the chief executive of the Basel, Switzerland-based drug maker, said Tuesday in a news release.
“They focus the company on leading businesses with innovation power and global scale,†he said. “They also improve our financial strength, and are expected to add to our growth rates and margins immediately.â€
